Question
To ask Mr Chancellor of the Exchequer, pursuant to the Chancellor's Budget Statement of 8 July 2015, what assessment his Department has made of the potential effect on families in London of proposed changes to child tax credits.
Answer
The Government is making changes to Child Tax Credit and Universal Credit which will help put welfare spending on a more sustainable path. The Government wants to move from a low wage, high tax, high welfare society to a higher wage, lower tax, lower welfare society. That means more emphasis on support to hardworking families on low incomes by reducing income tax through increases in the personal allowance and increasing wages, than on topping up low wages through tax credits.
The Government will set out its assessment of the impacts of the policies in the Welfare Reform and Work Bill in due course.